6 Romanian companies in the final top

6 Romanian companies in the final topMore than half of the Romanian technology companies registered in this year’s Deloitte Central Europe Technology FAST 50 competition have qualified for the final top, with two companies included among the first ten: Bucharest-based TeamNet International (second place) and Cluj-Napoca-based AROBS Transilvania Software.

Now at its 10th edition, the Deloitte Central Europe Technology FAST 50 ranks the fastest growing tech companies in the region, based on the growth rate of their revenues companies have experienced over the last five years (2004-2008). Entrants must also own intellectual property that significantly contributes to the company’s operating revenues; or they must devote a significant portion of revenues to research and development of technology.

The list of Romanian finalists includes software developers: TeamNet International (2nd place, with a growth rate of 3,317%), AROBS Transilvania Software (8th, +1,663%), Timisoara-based LASTING Software (29th, +487%), Iasi-based The RED Point (35th, +430%), and Bucharest-based Advantage Software Factory (45th, +350%), and Romanian Soft Company (47th, +312%).

Arobs reported first-half revenues of €3 mln, 10% more than year-ago period.


Small industries gain ground

Small industries gain groundIn 2008, it was the first time in the ranking’s history that a Romanian tech company made it into the top five. The country had three tech companies in Deloitte’s final top. The number has doubled this year, thus taking Romanian technology industry on the fourth spot among countries included in this competition, after Hungary (11), Poland (9) and Czech Republic (8).

“This year’s results clearly show the distinct evolution of each technology industry in the region. The above-mentioned leaders of the top are losing representation (with 28 firms this year, compared to 36 in 2008), as their companies are maturing and revenues can no longer grow at such fast speed. On the other hand, the smaller industries are gaining ground with more companies among finalists,” said Ahmed Hassan, Audit Partner and TMT Leader Deloitte Balkans.

“While the growth rates overall have significantly dropped compared to last year, given the global downturn, Romania maintains a faster growth rate compared to the overall average rate (+1,093%, versus +933%). This shows a major industry potential in the long run,” Ahmed Hassan added.


All bets on Asia

All bets on AsiaAs in previous years, winners of the regional competition will automatically be nominated in the wider competition, Technology FAST 500 EMEA for companies in Europe, Middle East and Africa. Romania had two companies among the first 100 finalists in 2008: Arobs Transilvania (49th place) and TeamNet International (71st place).

“The level of representation of Romanian companies this year was a very nice surprise, thus confirming the strength of entrepreneurship and the potential for technology ownership within the local industry. Over the years, Deloitte’s FAST 50 and FAST 500 competitions have become representative barometers for this industry’s development all over the world, and we are glad that we have managed to generate so much interest from Romanian companies as well,” said George Mucibabici, Deloitte Romania Chairman.

“Although the business environment didn’t seem favorable at the end of 2008, we have managed to achieve growth both in 2008 and 2009, in all business segments: GPS navigations systems, car fleet GPS-based tracking systems, and software solutions for companies in Romania, Western Europe and the United States. We are now planning expansion in Asia, especially Hong Kong, an area with major potential for business solutions. This expansion will help us consolidate both on a regional and international level,” said Voicu Oprean, general manager and owner of AROBS Transilvania Software, who has recently returned from a trip to Asia.



Highlights of Deloitte Central Europe Technology FAST 50

Highlights of Deloitte Central Europe Technology FAST 50• Companies from ten countries in the Central-European region made their way into the top this year, thus making the 2009 ranking the most diverse so far;

• 24 companies made the ranking for the first time;

• Internet companies and software developers are still dominating the hierarchy;

• Following the crisis, the overall average growth rate has fallen from 1,271%, last year, to 933%;

• Average growth rate of the five fastest growing companies was 3,526%, down from last year’s 5,204%;

• Average age of FAST 50 companies is ten years.

Methodology

FAST 50 entrants must be a technology company, defined as an owner of proprietary technology that contributes to a significant portion of the company's operating revenues; or as a company that devotes a significant portion of revenues to research and development of technology. Eligibility criteria also include operating revenues of at least 50,000 Euro (revenue must be accounted on a consistent basis during a period of five years); activity of the business for a minimum of five years.

The CEO Survey, which is part of this year’s ranking, illustrates that companies and CEOs themselves are currently facing different challenges that they had in previous years. Focus has shifted towards achieving and sustaining profitability, managing risk and volatility and raising capital. Confidence in growth in the next 12 months is positive, as 76% of respondents said there were very confident and extremely confident.